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Covered Call
BEGINNER income Capped lossEarn rent on shares you already own.
When to use it
You own 100+ shares (or were assigned via the Wheel) and are neutral-to-mildly-bullish. Sell a 30–45 DTE call at 0.20–0.40 delta; exit at ~75% max profit.
Max profit
Premium + (call strike − cost basis).
Max loss
The stock falling, cushioned by the premium.
Payoff at expiry
illustrative shape — not to scale
■ profit zone
■ loss zone
X axis = stock price at expiry →
How it's built
Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.
Hermes-evaluated setups
High-conviction per-ticker applications — setups with a confidence-adjusted win rate ≥ 80% over ≥20 backtested trades (95% lower bound — honest for the sample size, never a raw 100%). Avg P/L is the mean profit/loss per one-contract position.
| Ticker | Win Rate | Avg P/L / contract | Sharpe | Trades | DTE |
|---|---|---|---|---|---|
| UVXY | 94% | +$5,432.00 | 2.6 | 84 | 14 |
| BLK | 91% | +$2,371.00 | 3.8 | 41 | 30 |
| REGN | 91% | +$2,105.00 | 3.2 | 41 | 30 |
| TSLA | 91% | +$2,082.00 | 3.1 | 40 | 45 |
| MDB | 94% | +$2,074.00 | 3.3 | 57 | 21 |
| HD | 89% | +$1,726.00 | 4.1 | 31 | 58 |
| LLY | 91% | +$1,601.00 | 3.3 | 40 | 30 |
| ADBE | 91% | +$1,521.00 | 4.1 | 40 | 30 |
| ASML | 94% | +$1,464.00 | 2.3 | 84 | 14 |
| COST | 85% | +$1,369.00 | 3.1 | 33 | 14 |
| TMO | 83% | +$1,326.00 | 3.6 | 40 | 30 |
| LULU | 91% | +$1,222.00 | 4.4 | 41 | 30 |
| PH | 91% | +$1,162.00 | 3.4 | 57 | 21 |
| ULTA | 91% | +$1,155.00 | 4.0 | 41 | 30 |
| EQIX | 94% | +$1,150.00 | 3.6 | 57 | 21 |
| CEG | 90% | +$1,051.00 | 2.5 | 35 | 30 |
| GOOGL | 86% | +$986.00 | 2.5 | 23 | 21 |
| SQQQ | 87% | +$979.00 | 3.0 | 41 | 30 |
| ZS | 94% | +$929.00 | 3.8 | 57 | 21 |
| META | 94% | +$928.00 | 3.1 | 59 | 30 |
| HUM | 91% | +$908.00 | 2.4 | 57 | 21 |
| INTU | 94% | +$895.00 | 4.3 | 57 | 21 |
| NET | 87% | +$774.00 | 3.2 | 40 | 30 |
| DE | 96% | +$760.00 | 3.5 | 83 | 14 |
| COIN | 87% | +$751.00 | 3.0 | 41 | 30 |
| AMGN | 91% | +$749.00 | 3.3 | 40 | 30 |
| SNOW | 87% | +$736.00 | 3.8 | 40 | 30 |
| CAT | 94% | +$733.00 | 2.7 | 84 | 14 |
| AMZN | 86% | +$727.00 | 3.3 | 23 | 21 |
| ISRG | 94% | +$722.00 | 4.3 | 57 | 21 |
| LIN | 91% | +$711.00 | 3.0 | 40 | 30 |
| NUE | 87% | +$706.00 | 2.9 | 40 | 30 |
| ARM | 92% | +$699.00 | 2.0 | 45 | 14 |
| GOOG | 91% | +$699.00 | 1.9 | 41 | 30 |
| MSTR | 94% | +$690.00 | 2.6 | 84 | 14 |
| KLAC | 94% | +$665.00 | 3.0 | 57 | 21 |
| APD | 94% | +$665.00 | 3.8 | 57 | 21 |
| PANW | 91% | +$664.00 | 2.2 | 40 | 30 |
| SMH | 92% | +$623.00 | 3.0 | 83 | 14 |
| DASH | 83% | +$612.00 | 3.2 | 40 | 30 |
| STX | 92% | +$611.00 | 1.4 | 83 | 14 |
| AVGO | 91% | +$604.00 | 3.0 | 39 | 45 |
| CLS | 87% | +$598.00 | 2.5 | 41 | 30 |
| FFIV | 94% | +$590.00 | 2.4 | 57 | 21 |
| AXP | 94% | +$539.00 | 3.4 | 57 | 21 |
| STRL | 91% | +$530.00 | 2.3 | 57 | 21 |
| ETN | 90% | +$530.00 | 3.7 | 83 | 14 |
| DHR | 91% | +$527.00 | 3.6 | 40 | 30 |
| DG | 91% | +$507.00 | 3.1 | 40 | 30 |
| LNG | 91% | +$505.00 | 3.2 | 57 | 21 |
Backtested results are not a guarantee of future performance.